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Competitive Environment Analysis : Haagen- Dazs

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  1. Historic
  2. External Analysis
    1. The Pestel Framework
    2. The Five forces Framework
    3. Strategic groups
  3. Internal Analysis
    1. Key successful factors
    2. Value chain
    3. The SWOT Analysis
  4. Strategic purpose
    1. Corporate governance
    2. Corporate social responsibility (CSR)
  5. Business-level strategies
    1. SBU
    2. Strategy corporate
    3. Strategy generics
    4. Competitive advantage
  6. Critics

Since it was created in the early 1920s, Häagen-Dazs has become a strong and powerful brand, and is well established in the ice cream market. The company has made quality and originality its motto. Its philosophy is also based on the same principles: 'Find the purest and the finest ingredients in the world and craft them into the best ice cream'.1 The durability of the company and the high competitive market of ice cream makes one wonder what makes Häagen-Dazs successful. What strategy has Häagen-Dazs adopted in order to be one of the main actors in the ice cream market? It focuses on the high quality of the products but is it enough to maintain Häagen-Dazs at the first place? The quality implies higher prices, so would it not be prejudicial for the brand in the long term? Are the customers ready to buy ice creams at such a high price? Through this case study of Häagen-Dazs, we will see how the environment has an influence on the company's strategy (external analysis). Moreover, the analysis of the company itself, that is to say, its different strategies or its corporate governance for example, will help us to understand how the brand of Häagen-Dazs has maintained its success since the early 1920s.

[...] The differentiation strategy provides 'products or services that offer benefits different from those of competitors and that are widely valued by buyers'.32 Häagen-Dazs expects to get a competitive advantage thanks to the quality of its products and of its ingredients. Moreover, the differentiation of its products is mostly based on original flavours, such as white chocolate raspberry truffle, pineapple coconut and chocolate peanut butter.33 To be efficient, the differentiation strategy relies on two main factors34: First, it has to define the strategic customer. [...]

[...] Orders are dealt with the EDI system 14 SWOT Analysis Strengths Weaknesses Trailblazer on the premium ice cream High price (more expensive than its market. competitors) Haagen-Dazs is the leader of super- Variable sales depending on seasons premium ice cream with 42% of market Häagen-dazs offers fatty ice cream shares Worldwide presence (marketed in 70 countries) Innovation abilities (creation of exotic flavors)19 Research in new food technologies (tastes, nutrition, packaging and environment). Haagen-Dazs belongs to the world's sixth largest food company General Mills. [...]

[...] Jean Christophe Huon (responsible of the logistic of Häagen-Dazs in Europe) wants to reduce costs of transport for the the respect of the environment and the rate of truck loading. Entering a market: The company uses a three steps process, first it uses high end retailers to introduce the brand. Next it finds high traffic areas to build company owned stores. The last step is to sell Häagen-Dazs products in convenience stores and super markets.29 Goals: John Riccitellio, general manager of Häagen-Dazs has the ambitious goal of making Häagen-Dazs Europe's leading premium food brand.30 Partnerships: There are 4 joint ventures in partnership with Häagen-Dazs in Asia. [...]

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